Estimating the external costs of UK passenger transport: the first step towards an efficient transport market

The estimation of marginal external costs for passenger transport in the United Kingdom necessitates the development of new models in addition to the existing ones. The marked variation in associated externalities, such as air fare, bus, vehicle and rail costs, calls for disaggregation by peak and off-peak traveling and by the type of journey. Low marginal cost estimates for global warming and local air pollution needs an examination of the conventional analysis for possible errors and omissions.